Monday Market Update: Will Silicon Valley Real Estate Outperform the Nation in 2025?

CAR® Former President Says Yes. 

While real estate trends are often referenced and projected on a national level, nothing matters more than what is happening with housing in your own locale. The Silicon Valley real estate barometer often runs hotter and faster than the rest of the nation, and just recently an industry expert stated that 2025 will only amplify that effect. 

Former California Associator of Realtors (CAR)® President & Treasurer Dave Walsh has predicted that “Silicon Valley will outperform the nation as a whole with 15% growth in closed sales.” With national home sales expected to increase 9% in 2025, CAR® projects that California home sales will increase 10.5%. 

On a regional level, Silicon Valley home sales grew 15% in 2024 compared to 2023, and Walsh has stated that “There is not a marketplace in our valley that has not done really well this year compared to last year.” This fall alone, sales have surged since September, with 67% of sellers receiving over-asking offers on their homes. With demand heightened and far from dwindling, inventory continues to be a challenge – which is keeping values high. The average homeowner across the US holds $415,000 in equity, while the average Silicon Valley homeowner has $1.5 to $3 million in equity. 

There is no crystal ball, but there is a great deal of data that depicts continued demand, stabilizing rates and increased sales are on the way. If past Silicon Valley real estate behavior is any indication of the future, 2025 could be a great year to keep building equity, maximizing your ROI and/or living in a region of opportunity. If you need help weighing your options and planning your strategy, please don’t hesitate to reach out. 

Resource: Is Silicon Valley housing market on track to outperform the nation in 2025? This expert thinks so. (Palo Alto Online)

Warm regards,

Bobbi